Latin American Economic Development



INTERNATIONAL RELATIONS 330

POLITICS OF THE WORLD ECONOMY

Prof. Carol Wise

Fall Semester 2013

T-TH 11:00-12:20 SOS B44

Office Hours: T-TH 3:30-5:00 pm

Office: VKC 328

Phone: 213-740-2138

E-mail: cwise@usc.edu

This survey course provides an overview of those conceptual approaches, critical turning points, and key issues that have characterized the international political economy since the first wave of globalization in the 19th century. The main features of the course include: a comparison of the two waves of globalization in the 19th and 20th centuries; a detailed analysis of the political economy of the inter-war years; an examination of the post-World War II Bretton Woods era, including the design of formal rules and institutions to oversee heightened flows of international trade and finance; and, a review of those main themes that have dominated more recent political economy debates. The latter will cover, for example, the proliferation of regional trade and investment agreements, the eruption of numerous financial crises, the changing profile of multinational corporations and foreign direct investment, and those political economic challenges intrinsic to the early 21st century.

COURSE REQUIREMENTS:

• Completion of all assigned readings prior to each meeting. The following three books are required and can be purchased at or at the USC bookstore: World Politics: Interests, Interactions, Institutions, Jeffry Frieden, David Lake, and Kenneth Schultz (New York: W.W. Norton & Company, 2010); International Political Economy: Perspectives on Global Power and Wealth, edited by Jeffry Frieden, David Lake, and Lawrence Broz (New York: W.W. Norton & Company, 5th edition, 2010), and Global Political Economy: Theory and Practice, by Theodore Cohn (New York: Longman, Sixth Edition, 2012). For those wishing to brush up on some basic economic principles, I recommend the following: Economic Literacy: Basic Economics with an Attitude, by Frederick S. Weaver (New York: Rowman and Littlefield, 2002). All other assigned readings have been posted on Blackboard and can be easily downloaded.

Your grade will be based on the successful completion of: a 1000 word op-ed piece that provides commentary on and analysis of an important news event in the realm of international economic relations (20%); a mid-term exam that will consist of short essay questions (30%); participation in at least one of the group exercises detailed on the syllabus (10%); a final exam that will consist of short essay questions (40%); ONE POINT of extra credit will be granted for participation in the TIRP program. If you accrue more than 3 unexcused absences your grade will be reduced by 1 point; more than six unexcused absences will result in a 2 point reduction in your grade, and so on.

• Guidelines for writing your op-ed piece: To be an effective communicator, you need to practice writing. To this end, you are required to submit a 750-word op-ed piece, providing commentary on and analysis of an important news event. Summarizing the event will not be enough: to do well, you must provide your own insights. Scanning the opinion section of the New York Times and the Wall Street Journal will give you a good idea of the op-ed format. When submitting your op-ed piece, you must include links to or hard copies of those news articles that mostly directly informed your subject matter. The op-ed piece will be due on October 17, 2013. Late papers will be penalized at the rate of 1/3 letter grade per day.

• For Disabled Students: Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to me as early in the semester as possible. DSP is located in STU 301 and is open 8:30 a.m.-5:00 p.m., Monday through Friday. The phone number for DSP is (213) 740-0776.

CLASS SCHEDULE AND ASSIGNED READINGS

WEEK 1: Introduction to the Course

August 27: Overview

August 29: Markets and Politics

Theodore H. Cohn, Global Political Economy: Theory and Practice (New York: Longman, Sixth Edition, 2012), chapter 1.

Jeffry Frieden, David Lake, and Lawrence Broz, eds, International Political Economy: Perspectives on Global Power and Wealth (New York: W.W. Norton & Company, Fifth Edition, 2010), pp 1-19.

WEEK 2: Globalization of the World Economy

September 3: The Debates

Branco Milanovic, “The Two Faces of Globalization,” World Development 31 (2003): 667-683.

PDF posted on Blackboard.

Kenneth Scheve and Matthew Slaughter, “A New Deal for Globalization,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 30.

Jeffrey Williamson, “Globalization and Inequality, Past and Present,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 27.

September 5: Has Globalization Gone too Far?

Film: “Inside Job”

WEEK 3: Contending Theoretical Perspectives

September 10: Liberalism and its Lasting Effects

Theodore H. Cohn, Global Political Economy, chapter 4.

September 12: Realist and “Critical” Responses

Theodore H. Cohn, Global Political Economy, chapters 3 & 5.

Jeffry Frieden, David Lake, and Kenneth Schultz, World Politics: Interests, Interactions, Institutions (New York: W.W. Norton & Company, 2010), pp. xxiii-xxix.

THE HISTORICAL BACKDROP

WEEK 4: The 19th Century and the First Wave of Globalization

September 17: The Rise of Free Trade

Jeffry Frieden, David Lake, and Kenneth Schultz, World Politics: Interests, Interactions, Institutions, chapter 6.

Peter Gourevitch, “International Trade, Domestic Coalitions, and Liberty: Comparative Responses to the Crisis of 1873-1896,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 6.

Cheryl Schonhardt-Bailey, “Free Trade: The Repeal of the Corn Laws,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 5.

September 19: The Quest for Financial Stability

Lawrence Broz, “The Domestic Politics of International Monetary Order: The Gold Standard,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 13.

Jeffry Frieden, David Lake, and Kenneth Schultz, World Politics: Interests, Interactions, Institutions, chapter 8.

WEEK 5: From Boom to Bust---1900-1945

September 24: From World War I to the 1929 Crash

Susan Carruthers. 2001. “International History.” In The Globalization of World Politics, edited by John Baylis and Steve Smith, pp. 63-93. PDF posted on Blackboard

Jeffry Frieden, David Lake, and Kenneth Schultz, World Politics: Interests, Interactions, Institutions, chapter 1.

Woodrow Wilson, 1918. “The Fourteen Points.”



September 26: The Great Depression and Inter-War Years

Barrry Eichengreen, “The Political Economy of the Smoot-Hawley Tariff,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 2.

Charles Kindleberger, The World in Depression 1929-1939 (Berkeley: University of California, 1986), chapters 1 & 14. PDF posted on Blackboard

THE BRETTON WOODS ERA & BEYOND

WEEK 6: Institutional Foundations of the Post-War Global Economy

October 1: Introduction to the Bretton Woods Order

Theodore H. Cohn, Global Political Economy, chapter 2.

Barry Eichengreen, Globalizing Capital (Princeton: Princeton University Press, 2008), chapters 3, 4. PDF posted on Blackboard

October 3: Crafting a Regime for International Trade

Theodore H. Cohn, Global Political Economy, chapter 7.

WEEK 7: International Trade Post-Bretton Woods

October 8: The World Trade Organization

Alan Deardorff and Robert R. Stern, “What You Should Know about the World Trade Organization,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 23.

October 10: Regionalism and the Resort to Bi-lateral Trade Deals

Theodore H. Cohn, Global Political Economy, chapter 8.

WEEK 8: Student Presentations on International Trade

October 15: The Doha Round---Will it Ever be Completed?

• What is the G-20 and what has it accomplished? (1)

• The ‘old’ versus the ‘new’ trade agenda (2)

• Multilateralism versus regionalism (3)

October 17: Free Trade Areas and the Departure from Multilateralism

(Op-ed piece due)

• The China-ASEAN Free Trade Agreement: Wave of the future? (4)

• NAFTA: A historical relic? (5)

• Do labor and environmental standards belong within a free trade agreement? (6)

WEEK 9:

October 22: Study Day

October 24: MID-TERM EXAM

WEEK 10: Bretton Woods & Global Monetary Relations

October 29: Crafting a Regime for International Finance

Theodore H. Cohn, Global Political Economy, chapter 6.

October 31: The Collapse of the Bretton Woods Financial Accords

Barry Eichengreen, Globalizing Capital, chapter 5. PDF posted on Blackboard

Jeffry Frieden, David Lake, and Kenneth Schultz, World Politics: Interests, Interactions, Institutions, chapter 8.

WEEK 11: Foreign Debt and Financial Crises

November 5: The 1980s Debt Shocks in Retrospect

Theodore H. Cohn, Global Political Economy, chapter 11.

November 7: Financial Crises and the ‘Great Recession’

Nouriel Roubini and Stephen Mihm, Crisis Economics (London: Allen Lane, 2010), pp. 86-157.

PDF posted on Blackboard.

WEEK 12: Student Presentations on International Finance

November 12: Emerging Markets and Financial Crises

• A profile of the top ten emerging market economies (7)

• Why the Asian meltdown of 1997-98? (8)

• Developing countries as the first to rebound from the ‘Great Recession’ (9)

November 14: Is the ‘Great Recession’ Behind Us?

• Too big to fail, or big enough to demand a bailout? (10)

• A jobless recovery? (11)

• How to explain the Eurozone debacle? (12)

WEEK 13: Holiday

November 19: No Class

November 21: Thanksgiving

WEEK 14: Multinational Corporations in the World Economy

November 26: Drivers of Global Production

Richard E. Caves, “The Multinational Enterprise as an Economic Organization,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 9.

Theodore H. Cohn, Global Political Economy, chapter 9.

Jeffry Frieden, David Lake, and Kenneth Schultz, World Politics: Interests, Interactions, Institutions, chapter 7.

Shah M. Tarzi, “Third World Governments and Multinational Corporations: Dynamics of Host’s Bargaining Power,” in Frieden, Lake, and Broz, eds, International Political Economy: Perspectives on Global Power and Wealth, chapter 10.

November 28: Student Presentations on Multinational Corporations

• Is there a ‘new logic’ to global production? (13)

• Are ‘green’ investors really motivated by concerns for the environment? (14)

• FDI patterns in the 2000s: where is it ‘hot’ to invest? (15)

Week 15: Pivotal States

December 3: China & India

P. Shankar Jha, Crouching Dragon, Hidden Tiger: Can China and India Dominate the West? (Berkeley: Soft Skull Press, 2010), pp. 188-251, 223-249. PDF posted on Blackboard.

December 5: Student Presentations on the Development Backlog

• The Tenacity of poverty and income inequality (16)

• A Post-Washington Consensus on development strategy? (17)

• Immigration and remittances: safety valves or development tools? (18)

Final Exam: Tuesday, December 17, 8-10 am

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